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Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization

Denis Claude () and Mabel Tidball ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the optimal environmental policy in a mixed oligopoly when pollution accumulates over time. Specifically, we assume quantity competition between several private firms and one partially privatized firm. The optimal emission tax is shown to be independent of the weight the privatized firm puts on social welfare. The optimal tax rule, the accumulated stock of pollution, firms' production paths and profit streams are identical irrespective of the public firm's ownership status.

Keywords: Mixed Oligopoly; Pollution Control; Markovian Taxation (search for similar items in EconPapers)
JEL-codes: L33 L51 Q58 (search for similar items in EconPapers)
Date: 2006-07-10, Revised 2006-10-15
New Economics Papers: this item is included in nep-ene, nep-env, nep-mic and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization (2010) Downloads
Working Paper: Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization (2010) Downloads
Working Paper: Efficiency inducing taxation for polluting oligopolists: the irrelevance of privatization (2006) Downloads
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